If you’re practically knee-deep in debt, so much so that you have a very low credit score as proof, you probably know that the best option which will get you that loan approval is a satisfactory credit; higher loan interest rates just aren’t the best recourse for your situation. If you’ve filed for bankruptcy, it gets even tougher; you have to rebuild from scratch. The road may be all uphill, but at least you have a good chance of rebuilding your credit, and department store cards may just give you the push you need to get there.

Department store cards are highly recommended for those with no credit as yet, and since even those who have damaged credit can be eligible for one, it is a good alternative for you as well, at least in your efforts to raise your credit score from the ashes. Such cards are relatively easier to acquire than any other types of credit card, but it is very important to keep in mind that you signed up for it in order to rebuild your credit, and not to take on more debt than you already possess.

After you are approved for a department store card, use it sparingly, and keep your purchases well beneath half of your available credit. This lets you pay with ease once the monthly dues come in. Such cards are easily available, but with a catch: they carry higher interest rates than your usual credit card, and the late fees and other penalties can add up if you don’t watch out. Pay the dues in full every month – it is better if you personally pay for it by visiting the department store rather than by sending it through the mail. At least you’re ensured that the money reached its destination well ahead of time.

You may also limit your open department store cards to a minimum, about two or three at the same time. Although you may feel that you have enough to spend with many open accounts, your lender may think otherwise; such entries on your credit report could mean that you are trying to accumulate credit to take on more debt, and it won’t help your efforts for obtaining that loan. Once you have built up enough credit to show for a good payment history, don’t hang on to most of your cards; you’ll have to close on them since you achieved what you aimed for.

Now’s the time to shift to a bank-issue credit card with lower rates – it’s the logical progression for your case, and you have a good chance of being approved for it, especially if have much to show for your financial competence. Besides, you can also use bank credit cards on the same stores if both are affiliated with each other, and the interest rates are lower in comparison. Just make sure to manage your credit more efficiently this time; you just got out of a difficult rut, and it may take some time to fully recover from it. You still have a long way to go, but at least the worst part of your financial dilemma is over.